Gateway could cut work force by half (2,000 jobs)

[UpInArms]

http://news.com.com/2100-1041_3-5196190.html?tag=nefd.lede

Hoping to turn a profit by year's end, Gateway executives are crafting a restructuring plan that could reduce the company's product lines and, in a worst- case scenario, slash its work force by half, sources familiar with the plans told CNET News.com.

The discussions, which are being led by new CEO Wayne Inouye, are aimed at altering Gateway's costly operations to bring them more in line with the business model of eMachines, which Gateway acquired in March.

<snip>

In a memo to employees last week, Gateway Chief Administrative Officer Adam Anderson noted that speculation about more layoffs is creating anxiety but the company has no choice.

<snip>

As part of its planning, Gateway management is evaluating at least one scenario that would cut its work force to approximately 2,000 employees, about half of its current figure of 4,000, according to sources. It was only three weeks ago that Gateway said it would eliminate 2,500 jobs, or nearly 40 percent of its work force, to get to the 4,000 mark.

...more...

[judge_smales]

1. Gateway is toast

They'll be aquired by the end of the year, so it really won't matter.

[mbperrin]

2. Wow! Lookit that *Bush job machine go!

There the jobs go!

[robcon]

3. This is Gateway's incompetence, not some economic trend

Dell has outmarketed Gateway, has produced better models, better customer service (I've used both companies, and Dell is a huge improvement on Gateway) and better pricing.

Gateway's foray into retail stores was a stupid idea, and was doomed, IMO.

[piece sine]

4. a bucket of junk

Gateway's reputation among IT professionals is notoriously threadbare. The computer folks at work have actively campaigned for co-workers buying PCs and laptops for home NEVER to buy a Gateway, which they describe as a "bunket of junk." Have you ever heard a Gateway PC actually operate? It sounds like rusty old truck! Clunking and weezing...spend a little more for Dell and cruise the 'net in sleek efficiency.

The smart money blames Gateway's troubles on Gateway.

[alfredo]

5. When the bush recession started, Gateway was picked as a company

that wouldn't survive. They picked Dell, Apple, and Sony as survivors of the computer market shakeout. They didn't hold out much hope for Compaq.

[htuttle]

6. Remember when that reputation started?

It was right at the start of the company.

IIRC, back when Intel ended up with millions of Pentium chips with a division bug, Gateway bought the whole bad batch up and launched their first product line.

Not a great way to start a company, IMHO. Kind of surprised they've lasted this long.

[Tuttle]

7. Too bad, emachines were (are) great!

I have three (so far) and they have all greatly exceeded expectaions: they save money by not including things you don't use/need/want and instead provide things you will use/need/want.

Tut-tut

[Voltaire99]

8. Bleh, lousy machines!

A shame that Gateway workers who made it such a big pile of loot in the 90s are the ones to suffer, but that company's finished. It might have a future in flatscreen TVs, if it's lucky...

Btw, if you're shopping for a computer, do yourself a favor: avoid Gateway and Dell like the measles. Take it from someone who's built and serviced quite a few PCs: get an Apple. Windows machines are tickets to grief and worry; Apples aren't perfect, but running one without crashes and viruses is verrrrrry nice.

[FlashHarry]

9. I'm typing this on a Mac...

Quiet. Reliable. Fast. Intuitive. Pretty. :)

[Just Me]

10. Well, a prez with a record job killing record produces few consumers.

Face it,...this prez CONSUMES everything in his path leaving a starved earth.